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Draper Richards CERTIFIED

No New Investments Warning:
Members have submitted information that the following organization(s) may not be making investments into new portfolio companies. This warning can be contested by submitting proof of a completed investment in a new portfolio company within the last four weeks here.

Firm Rating:

Rated 3.4 / 5.0 by 19

TrackRecord

3.8

OperatingCompetence

3.1

PitchingEfficiency

3.4

FavorableDeal Terms

3.2

ExecutionAssistance

3.3

Firm Homepage:

FIRM OVERVIEW: Small Private VC founded in 1994 based out of San Francisco, USA (US West)

FIRM DESCRIPTION: Draper Richards is an active investor, dedicated to helping entrepreneurs achieve their maximum potential through contacts, advice, and support. We provide portfolio companies assistance in the areas of strategy, executive team recruiting, and raising capital.

I met with Bill recently to get his advice on an early stage social network recently. Bill was personable, sharp and when the conversation moved to business, he called in his CFO Cynthia and the two peppered me with sharp, thoughtful questions. Before the meeting was over, Bill made a call to introduce me to another investor. Very helpful and personable all around.

I was reading that the infamous, blunt, and outspoken general partner, Howard Hartenbaum, has left Draper Richards for another venture firm. From my dealings, Howard is definitely rough around the edges, but he was the face man of the firm.

Since almost all of the reviews here are of Howard's performance, ranging from "Really Conceited" to "Howard Is Human," I am not sure what the future hold for Draper Richards. Draper Richards needs to move quickly to separate its image from Howard and build a new reputation.

It's also not a great sign that the face man has left. Are they out of money"

Unlike his peers at DFJ, Howard delivers when he offers to help. DFJ folk seem to just want volume, and don't care for you. Howard is different and I suspect the part of the ego that offends others as reviewed above, is probably a way Howard establishes whether it's worth to help them going forward. If you are weak skinned, why bother, since the vc world is going to be tough"

My experience with HH is that he asks more questions during a meeting than other VCs, really listens to your answer about as often as other VCs and figures things out pretty quickly. Some of the things he figures out are actually correct.

Posted by
newmkt
on 2007-09-08

PUBLIC:

We pitched Howard on our consumer product business. Our market is outside their stated focus on technology, yet Howard was open to learning about out company, and immediately able to give good feedback. Rhonda Stinson also contributed to the conversation, and was great to have involved. If she's available, I recommend having her join your meeting. She's very smart and is influential within the team. Bill stepped into the meeting as well, and seemed to be very personable, and similarly open-minded. I have not had the opportunity to meet Robin.

Posted by
Anonymous
on 2007-09-07

PUBLIC:

Our experience with Bill and Howard was extremely positive. They were highly engaged during the pitch and provided thoughtful feedback. Bill focused on the team and Howard on the business model. Although they did not invest they went out of their way to help by providing introductions to potential investors. They followed up immediately; Bill even called one investor while we were meeting.

I recently reached out to Howard and Robin regarding funding a venture in Florida. Although they are not making investments in Florida, they responded quickly and provided a direct referral to a Florida-based VC, with whom they have co-investing experience. This is how pros behave. Very refreshing!

I met with Bill and Howard in late 2003 to pitch my business (at Buck's in Woodside no less!) and I was impressed with their enthusiasm and energy.

Within hours, both Bill and Howard are calling contacts to both vet us and make useful intros. I spent some time chatting with Bill one-on-one and was impressed at how genuine and personable he was. Howard was particularly inciteful in his analyses of business and markets in our industry. I liked the way he was thinking & the fact that he didn't fear thinking out loud.

Posted by
abeson
on 2007-08-01

PUBLIC:

I've met with Howard both to collaborate on investment projects as well as to solicit feedback on my own company and have been extremely impressed each time. He always adds great insight and goes to great lengths to solicit others to help. And rare in the Bay Area, he is always prompt and attentive.

Posted by
Ajax
on 2007-07-20

PUBLIC:

Ok, I have known Howard for 4 years, and in all that time Howard has always been supportive, honest, insightful and a great guy to get along with. He doesn't have time to coddle you, but he returns calls promptly, gives you well thought out and reasoned advice, and is just about the only guy in the valley I really trust to look out for me as an entrepreneur.

Last year I took a company I am on the board of out to meet Howard. he gave them straight forward advice that meant they had to change a LOT. A year later they did it all and Howard got them 5 meetings in a week. Howard got nothing out of this, but did it because he is a good guy who likes to see entrepreneurs succeed.

Posted by
auren
on 2007-07-17

PUBLIC:

while i have never pitched Bill or Howard, plenty of the companies i have been an angel investor in have. Bill and Howard are both great guys and they are the "good guys" in the venture world. they have both been extremely helpful to me over the years with lots of helpful advice, contacts, and insights. they are definitely a go-to stop for an entrepreneur.

Posted by
joescout
on 2007-07-02

PUBLIC:

I met Howard Hartenbaum and Bill Draper 3 weeks ago through a referral from another VC. We had just 2 days earlier closed a small seed round with a small VC and a group of angels. They gave great feedback, asked great questions, and followed through with an investment exactly as promised.

Howard and Bill scheduled around me and agreed to meet me first thing in the AM - I showed up 10 minutes early and we started right away. Both asked great on point questions as they had prepared in advance and obviously read the ppt and executive summary I had provided them a day before the meeting. It was also clear by their questions, they had done some phone calls to learn more about me and the business already.

I only showed one slide (the business model) as the questions and answer discussion was on track and covering the key items I wanted to cover. 50 minutes into the meeting - Bill turned to Howard and they talked about what they thought to each other (in front of me). They then agreed to fund the same amount on the same terms as the original VC and add to our just closed round. They agreed to make it happen in a week subject to them checking 2 references on me. 7 days later they sent their signature pages and wire as agreed.

Summary - I have not worked with Howard and Bill before - but based on their great questions, track record, and doing what they said they would so far - I am super excited to have them involved.

Posted by
SG
on 2007-06-21

PUBLIC:

I've worked with Draper Richards twice now. Each time I've found them to be good investors and partners. They have a unique approach to VC, but it works well for them and they've had some great wins. Bill and Howard use different approaches, but both bring a lot to the table. Bill is the epitome of old school VC - he's a gentleman that invests in people first and technology second. Howard is the new school - smart and aggressive. He likely understands your market better than you do. It's his job to find and/or qualify deals - and he's good at this. However this requires a certain amount of pessimism and critical thinking. I can see how some folks might have trouble with this - everyone wants (needs) to believe that their idea is extraordinary. It's Howard's job to make sure that it really is - and that it will be a successful investment. Once you're past this process and these guys invest in your company, Howard will be an ardent supporter and do everything possible to help you succeed.

Raising capital is quite the experience - and a different one at that for each investor you speak to. Meeting with a diverse group of venture investors, I've found that no one is exactly quite like Howard. At a period when he wasn't really interested in our business, he still took the time to provide us with real guidance and feedback on how we could improve our business model and product. Not like many VC's, which simply want you to hear their point of view and break down your whole business model before you are even out of the gate. Howard is experienced, logical, and responsive.

As our business model evolved and became more refined, in large part due to Howard's guidance and recommendations, our product offering has become more focused and our market credibility has significantly increased.

Most importantly, Howard takes the time to brainstorm with you for the best direction for your Company, and was even willing to help direct us to other firms which he felt would be strategic. Overall, he is someone with integrity and intelligence, willing to provide candid feedback that doesn't come across in the wrong way. Howard has yet to fund our Company, but he is definitely on the short list of VC's I would like to work with and bring on as a stratgic partner. Howard did not ask me to write this, but I felt it was important to share my experience for others.

I've met Howard a few times over the last 6 months and continue to have contact with him over email. I am at a loss to understand some of the negative feedback that people have about him. My experience with him has been very pleasant, educational, and fruitful.

Howard and Bill are a unique team. Bill has been in the VC game since the beginning and brings the kind of insight and advice and wisdom that is rare. Bill's advice is valuable even on those rare times when he is not 100% on target. He is the kind of mentor and board member that every board and CEO would be blessed to find.

Howard is like a younger Bill. He gets the technology, the business proposition and your company instantly. If you're having trouble with Howard it is usually a sign that you are off your game or you're just taking too much time to explain something. He is like a race car - response is instant.

I had a meeting with DFJ people and, to my surprise, Howard had "invited himself" (as he said) to the meeting. I must confess that I didn't know much about him or Draper Richards beforehand, but it turned out that he had experimented with our service, got our story immediately, and gave direct, but constructive feedback that sometimes was opposite to the views of all the other investors we have met.
A first meeting with a VC could not have been much better or nicer.

Posted by
khatibda
on 2007-06-04

PUBLIC:

if you can get a meeting with howard, take it. it's different from the standard pitch and grin meetings in the valley. he brainstorms with you and tries to engage in debate and solve problems. and don't mistake this for someone telling you how to run your biz - he's giving you a frank glimpse into what a working relationship would be like. that's both rare and valuable. we didn't get funded, but we left HH and DR impressed.

Bill is a very nice and helpful person. He's a VC because he likes being around entrepreneurs, not because he's driven by making more money (though I'm sure he enjoys it--though I think he gives most of it to the Symphony and other places). Howard is a sharp guy and a straight-shooter. I've seen him really keep the interests of entrepreneurs in mind.

We had some interesting meetings with Draper Richards, most of them worthwhile and enlightening. Howard is smart and he knows it, but the BS factor is substantially less than in most other firms, which I appreciated. I'm definitely one of those entrepreneurs who likes direct feedback. He was open with us about his concerns, but also was open about the fact the he liked our space, our product, and our management team. Bill Draper was a bit of a wild card in the meetings --- you can never predict what kind of question he's going to ask (relevant or not), or even if he'll attend the entire meeting. That said, he's a stand-up guy, and I felt much better about his involvement after meeting him at his home to finalize terms. During negotiations, there's a bit of a good cop/bad cop routine going on between Howard and Bill, but in general I appreciated the fact that they pushed it toward closing, though with more legal back and forth than I would have liked. Overall, we're extremely fired up to be working with Bill and Howard, and Draper Richards is highly recommended.